Causes of Inflation Rate To Filipino People

One that affects the increase of inflation rate to Filipino people

is the cost of living. If one ordinary Filipino family can earn the
exact amount for their family when inflation becomes increase
and all the price increase that’s the time that a family will no
longer buy some of the of their other necessity. The income of
one of the Filipino family cannot sustain the needs of their
family because of the high inflation rate.

The cost of living that affect Filipino people are.

1. Price increase of foods like rice, vegetable, fruits, can foods,
and wet foods.
2. The increase of transportation
3. The increase of fuel oil every now and then
4. The price increase can also cause children education
5. The increase of electric bill and water bill
6. Low income of an individual that cannot support the family
necessity.
7. The higher cost of living can cause the poor living of Filipino
people to become very poor
8. Also, the production of the commodities and services is
increasing because of the effect of TRAIN law.
Also, inflation rate can cause the Filipino behavior. Why? In this
time a lot of people fall into bad manners or do a lot of bad
things just to make sure that they can have money to give for
their family and can feed their family. Because all commodities
that you can buy is very expensive and only who are in the high
level of living can accommodate to buy. Now if you are not
earning at least 10,000 a month you cannot support even
yourself because of the cost of living that we have now. All the
things that we need in our daily life are all increase in price
while the salary of the ordinary employee still the same. The
 inflation rate in the Philippines becomes higher with the rate of
6.4% in August 2018.

The cause of the inflation rate becomes higher nowadays is the

Oil price that continues to increase. We all know that we only
export Oil to other country and if the demand is higher that’s the
time that the supply increase in price and if the price of the Oil
fuel become increase they affect all the product that need to
ship or to travel. That’s also the time that all the product we buy
can also cost too much.

All the price of goods become higher and higher every day and
that causes many Filipino families to experience to once a day
only because of the higher cost of all the foods. Many Filipino
are not satisfied with the result of economics that we have now.
The government that implements TRAIN LAW cannot help
Filipino people live to lighten but it gives Filipino a hard time on
living.

The Economic Crisis Before and Now

 Before

Before the economic in the Philippines is not that difficult to

budget the income of the Filipino family. Even if they earn a little
they still survive a whole family because the price of all the
foods before is cheaper. Before if the head of the family earns
1000 pesos a month they can buy all their daily needs and they
can send their children to school even if the mother is a
housewife. Price of the food before when I was younger is really
cheaper compare now. I remember before when I go to school I
only have 5.00 Pesos as an allowance for the day and yet I can
 buy food in the canteen and I can also pay my transportation
before. And I remember before that the food we eat is more
nutritious and healthy compared to this day. Before you can
drink fresh fruit juices and the soft drinks before is not ordinary
drinks that Filipino drink every day.

The economic average before ranges was 3.3 percent under

the President of Ferdinand Marcos that was 1973 to 1985. And
the average range under the President of Corazon Aquino was
3.6 percent from 1986 to 1992. It also reaches 3.7 percent in
the middle of 1992 to 1998 when former President Fidel Ramos
to come. And when President Joseph Estrada term the growth
of the Philippine economic also fell down. But during the term of
President Gloria Arroyo and President Benigno Aquino 111, the
growth of the economy began to increase higher in the early
2000s during their term. However when President Rodrigo
Duterte term the growth of the economic average range is 67
percent at this present.

 At Present

At this present, all the foods, transportation and communication

are all increase because of the TRAIN LAW that our President
Duterte implemented. It very hard to budget the income of an
ordinary Family man to survive for the whole day to give all the
needs of each member of the family. At this moment our
economic financial is not stable and at risk. The more the
commodities increase day by day the impact of this on Filipino
people is really bad. It also helps the Philippines to fall to have
more Filipino become poorer and poorer to all Asian Country.
The direct price impact of higher taxes cannot help to Filipino
people in their daily lives. The demand for higher transport fares
can also affect the family of Filipino people who really suffer
from the higher and higher price increase of foods.

On this day the economic expansion per capita income has

increased rapidly. The Filipino people really suffer the increase
in inflation because of the TRAIN Law and the higher tax on
fuel, automobiles and other commodities example alcohol
beverage, tobacco, sugary and others. All price increase in
transport, foods, clothing, housing, electricity, education,
logistics, and health medication. The cost of money can be
passed on to the consumer through price increase that’s why
Filipino suffer a lot because of this TRAIN Law.

The increase in inflation also suffer the exporters because of

the high cost of money, logistics, and power that make them
hard to compete in the global market. The high rate of money
exchange and the continuous dropped of the value of the
Philippine peso affect exports, imports, and business
transaction in the country. It also affects all the investor to think
twice before they invest in the Philippines.

The Impact of Inflation in the Philippines

Today if we compare the Philippines to other Asian countries
we only better than Cambodia, Laos, and Myanmar. The
Vietnam and Indonesia take over us. The Philippines go down
and take over Vietnam and Indonesia because of the high
inflation rate that our economy goes down and down. Because
of the TRAIN Law, many industries and business were closed
while others force to lessen their employees for them to survive.
All commodities in the Philippines continue to increase in price
rapidly.
Another way that can affect inflation in the Philippines is the
value of peso that become very low day by day. Each day the
Philippine pesos become weaker in currencies in ASEAN. We
know that some product was import in foreign currencies and if
the pesos is in very low in cost it makes all the product cost
become higher because of this currencies exchange.